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Credit Card Tips and Tricks

Whether you are brand new to the credit card world, or a seasoned user – here are some tips to ensure you are using your credit card in a financially healthy way.

Only charge what you can afford.

The buy-now-pay-later premise of credit cards can be tempting, but spending beyond your means is a quick way to accidentally land yourself in debt. Rather than spending more on your credit card than you can afford, use your card like a debit card. If you do not have the money in your account to pay for the purchase, do not put it on your credit card.

Make your monthly payments on time.

If you only take away one thing from this list – we hope, it’s this!

Be sure to at least make your minimum payment before your due date each month! Consider setting up automatic payments to avoid forgetting. While a day or two late payment won’t hurt your credit, it can be costly. Some credit card companies will tack on late fees or increase your APR (annual percentage rate). If you fall more than 30 days behind, your account can become delinquent, and that will end up on your credit report. Payment history has a huge impact on your credit score, and a delinquent or missed payment can hurt your credit for up to seven years.

Pay more than your minimum payment.

If you follow tip one, you should be able to pay your credit card balance off in full each month. We know life can throw curveballs and some months you may be a little short. Some credit cards have a grace period, which is the time from when your statement closes to when your bill is due. If you pay your balance in full before the grace period ends, you can save money by avoiding interest charges. However, if you only make minimum payments, you will accrue interest on your balance. If you continue carrying over a balance each month, this can add up fast and bury you in debt.

Stay clear of your cards limit.

One way to keep your credit score healthy is to keep your credit utilization ratio under 30%. This rate tells lenders how much debt you are carrying around compared to how much credit you have available to use.  The lower the percentage, the better. How does this apply to your credit card?  If your credit limit is $1,000, try to keep your monthly balance and charges under $300.

You might be thinking, if I pay my balance in full each month, my credit utilization ratio will be 0%. That is not necessarily true. Most credit card issuers report your card’s balance information to credit bureaus at the end of each billing cycle, which is also when they send you your monthly bill. So even though you pay your balance in full, the credit card balance was likely already reported. 

Check your statements monthly.

Each month, you’ll receive a credit card statement. While it’s tempting to just eyeball the balance and make your payment, we recommend taking a closer look. Do you recognize every charge? Unfortunately, fraudulent charges on credit cards are not uncommon. Even a small charge should be reported. Scammers may be testing your card to see if it works before they make a larger purchase.

Reporting fraudulent purchases helps the credit card issuer stop the fraud and prevents you from paying for things you didn’t buy.


Owning a credit card empowers you as a consumer. It makes both in-person and online transactions not only convenient, but also rewarding. While credit cards can be great tools for your finances, you do have to be careful, since it can be easy to fall into the debt trap.

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